Personal NetWorth Blog

Menu

The Finish Line

Where is it I am trying to go exactly?

Once I hit 55 and a half, or 62, or 65 I know I am all set. The numbers from My Retirement Master Plan are clear.

The real question is how much do I need to stop below the 50 years old mark?

25 Times expected annual expenses.

Let’s call it $70,000 a year if no mortgages, no debts, and no worries about kids in college.

So using a 4% draw rate, I need $1,750,000 in invested liquid assets to Cross the Financial Rubicon.

I’m at over the $2 million mark in assets, but minus current debts, only at about 1.6 million as seen in a current Net Worth Statement.

The problem is that large chunks of that wealth are tied up in the wrong kind of assets (real estate, and retirement accounts).

Current Liquid Wealth is only at a smidgen under $500,000. Now, I do expect to sell my primary residence at the jumping off point, because I intend to live at The Cottage. So we can add another $150,000 after paying off the rest of the mortgage note.

Now we are sitting at $650,000. I also have another $100,000 sitting in 457(b) accounts. These Deferred Compensation accounts have an early withdraw penalty of 10%. However, right when you leave the job, say at age 50 🙂 You can withdraw without penalty. I think, correct me if I am wrong folks.

I won’t need that money later in life because of all the other retirement vessels sitting out at sea waiting to pull into harbor at later ages. Adding that in, we reach 3/4 of a million.

Getting closer and closer to Sailing off into the West.

I am also only 43. I save about $45,000 every year into these liquid assets and can look forward to 7 more years of growth.

Adding $350,000 of future contributions to the current totals of $750,000 gets us to $1,100,000.

Let’s add a modest 4% growth due to interest rates creeping up and a decent stock market. I could also have a decent real estate appreciation right?

I think we are being reasonable in our assumption that we could hit our target of 1.75 million by the year 2024.

It is nice to actually map out the Yellow Brick Road and feel the pavers under your feet.